Raising a family in Australia comes with various financial responsibilities, from education and healthcare to daily living costs. To help manage these expenses, the Australian Government offers the Family Tax Benefit (FTB), a two-part payment scheme designed to support eligible families. In this guide, we’ll break down the eligibility criteria and benefits of Family Tax Benefit Part A and Part B, helping you navigate the system to ensure you’re making the most of available support.
What is the Family Tax Benefit?
The Family Tax Benefit (FTB) is a government payment that assists families with the cost of raising children. It’s split into two parts:
- Family Tax Benefit Part A – This payment is per child and is based on the family’s income, the age of the children, and other factors.
- Family Tax Benefit Part B – This provides additional support for single parents or families with only one main income earner.
Both benefits are paid either fortnightly or as a lump sum at the end of the financial year, depending on the family’s preference.
Australia Family Tax Benefit: Part A and Part B
The Family Tax Benefit is a critical financial support tool for Australian families, particularly those managing single incomes or raising multiple children. By understanding the eligibility criteria and payment amounts, families can ensure they receive the assistance they need to cover child-rearing expenses.
| Category | Family Tax Benefit Part A | Family Tax Benefit Part B |
|---|---|---|
| Who is eligible? | Families with children under 15, or 16-19 if in full-time secondary education. | Single parents, grandparents, or couples with one main income. |
| Income limits | Full benefit for incomes up to $80,000. Reductions apply above this limit. | For single income families earning up to $117,194 annually. |
| Payment per child | $222.04 fortnightly (for children aged 0-12). | $131.74 fortnightly (youngest child aged 5-18). |
| Payment per family | Based on child’s age and family income. | Extra support for families with one income earner. |
| Residence rules | Must be an Australian citizen or permanent resident. | Similar residency requirements as Part A. |
Family Tax Benefit Part A: Who is Eligible?
To be eligible for FTB Part A, families must have a dependent child under 15 years of age, or between 16 and 19 if they are studying full-time in secondary school. The amount families receive is based on their income, the number of children, and the children’s ages.
The income test for FTB Part A is straightforward: families earning up to $80,000 annually can qualify for the full benefit. Above this threshold, payments are reduced by 20 cents for every dollar until the family income reaches $115,000, at which point a steeper reduction applies.
For children aged 0 to 12, the maximum fortnightly payment is $222.04, while for children aged 13 to 19, families may receive $288.82 per fortnight. Families must also ensure their children meet immunization requirements and health check standards to qualify.
Example: If a family has two children, aged 7 and 14, with an income of $75,000, they are eligible for full FTB Part A payments for both children.
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Family Tax Benefit Part B: Additional Support for Single-Income Families
FTB Part B is designed to provide extra support to families where there is a single-income earner, such as single parents, grandparent carers, or couples with one primary breadwinner. The eligibility for Part B extends to children under the age of 13 for couples, and under 18 for single-parent households.
The income test for FTB Part B looks at the income of the lower-earning partner in the household. If the secondary earner’s income exceeds $117,194 annually, the family becomes ineligible for the benefit.
For younger children (aged 0-4), the payment is $188.86 per fortnight, while for children aged 5 to 18, the payment is $131.74 per fortnight. This additional support helps cover various child-rearing expenses when one parent is unable to work full-time or at all due to childcare responsibilities.
How to Apply for Australia Family Tax Benefit 2024
Applying for the Family Tax Benefit is a straightforward process that can be done online:
- Create a myGov Account: If you don’t already have one, create an account at myGov.
- Link to Centrelink: Once your myGov account is set up, link it to Centrelink.
- Submit Your Claim: Through the Centrelink portal, submit your claim by filling out the required forms.
- Provide Supporting Documents: Be prepared to provide proof of your income, residency status, and information about your dependents.
- Wait for Confirmation: Centrelink will review your claim and notify you of the outcome, typically within a few weeks.
If you have difficulty completing your application online, you can contact the Families Line at Services Australia for assistance.
Frequently Asked Questions (FAQs)
1. Can both parents claim Family Tax Benefits?
No, only one parent can claim the Family Tax Benefit, even in shared custody arrangements.
2. Is there a maximum income threshold for Family Tax Benefit Part B?
For single parents or one-income families, the benefit is reduced once earnings exceed $117,194 annually.
3. What happens if my family’s income changes during the year?
If your income changes, your FTB payments may be adjusted. It’s important to update your income estimates with Services Australia to avoid overpayments or underpayments.
4. Can I receive both Part A and Part B?
Yes, many families qualify for both FTB Part A and Part B, depending on their financial situation and family structure.
5. Do I need to lodge a tax return to receive Family Tax Benefits?
Yes, you must lodge your tax return, or notify Services Australia if you aren’t required to lodge one, to receive the end-of-year supplements for both Part A and Part B.
